Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Euro rangebound in cautious trade as U.S. data eyed

Published 10/03/2012, 07:19 AM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-
EUR/CHF
-
EUR/AUD
-
EUR/CAD
-
EUR/NZD
-
Investing.com - The euro was trading in a narrow range against the other major currencies on Wednesday, as trade remained subdued amid ongoing uncertainty over the timing of a Spanish bailout and investor’s eyed U.S. data due out later in the session.

During European early afternoon trade, the euro was slightly lower against the U.S. dollar, with EUR/USD slipping 0.12% to 1.2902.

Sentiment on the single currency remained fragile after Spanish Prime Minister Mariano Rajoy said Tuesday that a bailout request was not imminent, despite ongoing speculation that Madrid was moving closer to requesting external financial aid.

Demand for the greenback remained underpinned after a string of weak service sector data fuelled concerns over the outlook for the global economic recovery.

A report earlier showed that the final euro zone services PMI came in at 46.1 in September, well below the 50 level which separates contraction from expansion.

The single currency was little changed against the pound, with EUR/GBP inching up 0.04% to 0.8010.

In the U.K., data showed that the service sector shed jobs for the first time in 10 months in September as growth slowed; undermining hopes for a sustained recovery in the recession hit economy.

The euro was steady against the yen and the Swiss franc, with EUR/JPY dipping 0.01% to 100.94 and EUR/CHF inching up 0.03% to 1.2101.

The shared currency gained ground against the Australian, New Zealand and Canadian dollars, with EUR/AUD up 0.35% to 1.2627, EUR/NZD gaining 0.63% to 1.5707 and EUR/CAD rising 0.19% to 1.2738.

Earlier Wednesday, official data showed that Australia posted the largest trade deficit in three-and-a-half years in August as export demand slowed, one day after the country’s central bank cut interest rates for the third time in six months.

Sentiment on the commodity linked dollars was also hit after official data showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy.

Later in the day, the U.S. was to produce a report on ADP nonfarm payrolls, while the Institute of Supply Management was to produce data on U.S. service sector activity.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.